Question: 5 on june 1 2018 irene places in service a...
5. On June 1, 2018, Irene places in service a new automobile (car under 6,000 lbs.) that cost $21,000. This is the only asset placed in service in 2018. The car is used 100% for business. Irene elects out of bonus depreciation.
- Determine the maximum cost recovery deduction for 2018.
- Determine the maximum cost recovery deduction for 2019 (year 2).
- How would (a) and (b) change if the vehicle cost had been $60,000 in 2018?